The list of the major factors that create economies of scale includes all of the following except:
A)specialization and division of labor.
B)quantity discounts.
C)an increase in demand for the firm's output.
D)the use of automation devices.

Question

Quizplus · Accepted Answer

An increase in demand for the firm's output is not a factor that creates economies of scale. While an increase in demand may result in an increase in output, it is not directly related to the factors that create economies of scale, such as specialization, division of labor, automation, and quantity discounts.

The List of the Major Factors That Create Economies of Scale